News and Opinion from Sisters, Oregon

Economic development or economic growth?

Strictly speaking, economic development and economic growth are not the same thing.

Economic development per se is oriented around government policies, infrastructure and other conditions that allow for or encourage economic growth.

The city of Sisters actually has a considerable set of economic development elements already in place. The city is part of an enterprise zone with Redmond, which provides tax incentives for businesses locating within its boundaries. There is a significant inventory of land zoned for a variety of commercial uses (though prices are often higher than elsewhere in the region) and Sisters is home to a private airport that allows entrepreneurs quick access to the outside world. Internet access is widespread and of good quality.

The Sisters City Council has evinced a willingness to work with businesses to make locating or staying in Sisters "pencil," with deals such as that made recently with Three Creeks Brewing Co. to reduce sewer fees. The willingness to deal has not been universal; the City declined to change its rules for temporary seasonal businesses this year.

And some business owners on Main Avenue question the business-friendliness of the newly installed reverse-angle parking, which, they fear, will drive off customers.

City Councilor Pat Thompson would like to take a hard look at one area of policy that has a direct bearing on the cost of development in Sisters. By charter, the City of Sisters is required to charge the maximum allowable rate in systems development charges (SDCs). Systems development charges are paid by anyone building a house or commercial building to cover the impact of the new development on streets, sewers, water systems and parks.

A charter amendment was passed in 1998 requiring that those SDCs be the maximum allowed under state law.

Thompson argues that the charter provision takes away a negotiating tool from the City and could push development costs beyond what developers are willing to pay.

"We could put ourselves right out of developable businesses because the SDCs could be way too high," Thompson said. "Especially because other communities are reducing their SDCs to make it more attractive."

Thompson cites the City's Transportation Systems Plan as an example of what he considers a major problem.

"You'll never collect enough (in SDCs) to pay for the entire plan... but you would collect too much to make it feasible to develop."

It would require a vote of the city's electorate to repeal the 1998 charter amendment.

Two councilors told The Nugget they would like to revisit Sisters' strategic plan on economic development - though their approaches are at a wide variance.

"I would like us to update our Economic Development Strategic Plan," said Councilor Sharlene Weed. "It was last updated in 2009. The economic environment is now very different. This should be a community-wide, inclusive process. The desired outcome would be to get all sectors working together on strategies to enhance and promote each one. The plan would provide a road-map that we could all follow and that we could all articulate. 

"I would like the process to include a comprehensive assessment of the state of our town's economy. How many empty storefronts? How many empty offices? How many foreclosures? How many jobs? How many new businesses each year? What are the trends? Opportunities? What resources do we need? What resources are available? How can the City remove barriers to business development?"

Councilor David Asson prefers to scrap the plan, which he considers "worthless."

"Few of the goals or tasks are specific enough to instruct or guide a volunteer or employee to action," he said. "Many are marked 'Done' and yet appear on the plan. Some appear dubious... some are impractical and unfunded... None assign direct responsibility or completion deadlines."

Asson favors a stripped-down "action plan" for economic growth created by a small committee of citizens with long experience in other communities. The city council would consider the plan for adoption.

Asson is concerned that "we are at times biased and focus too narrowly on tourism and retail. The desire to retain our natural beauty and small-town ambiance has grown to a belief, in some circles, that newcomers may tarnish our world with fumes or mis-fitting mores. We need a strong course in long-term, out-of-the box thinking."

There's no shortage of people thinking about the issues associated with economic development and sustainable prosperity. Arts advocates hope to leverage Sisters' well-established reputation as an artistic community both to attract tourists and incubate craft industries. Others envision a hub of engineering and high-tech activity in Sisters industrial parks, driven by the ability to attract professionals with a small town atmosphere and outdoor recreation opportunities.

Many pin their hopes on a revival of the housing market, even if it appears unlikely to ever return to the fervid pitch of, say, 2005.

And virtually everyone who is tied in to the Sisters economy is hopeful that the worst of a very deep recession is over and that recovery, even if it comes in fits and starts, lies ahead.

Author Bio

Jim Cornelius, Editor in Chief

Author photo

Jim Cornelius is editor in chief of The Nugget and author of “Warriors of the Wildlands: True Tales of the Frontier Partisans.” A history buff, he explores frontier history across three centuries and several continents on his podcast, The Frontier Partisans. For more information visit www.frontierpartisans.com.

 

Reader Comments(0)

 
 
Rendered 12/13/2024 03:24